GE Vernova to Acquire Remaining 50% of Prolec GE Joint Venture from Xignux for $5.275 Billion
GE Vernova will fully consolidate Prolec GE after 30 years as a joint venture, adding approximately 10,000 employees and seven transformer manufacturing sites globally. Photo Credit: GE Vernova Inc.
Key Points
- GE Vernova Inc. (NYSE: GEV) announced it will acquire Xignux’s 50% stake in Prolec GE — a leading transformer manufacturer — for $5.275 billion, consolidating a joint venture established in 1995.
- Prolec GE is projected to generate approximately $3 billion in revenue at roughly 25% adjusted EBITDA margin in 2025, with low double-digit revenue growth expected in coming years.
- The $5.275 billion purchase price will be funded equally between cash and new debt; the deal is expected to close by mid-2026 subject to regulatory approvals.
- The acquisition accelerates GE Vernova’s Electrification segment — the company’s fastest-growing segment — and adds five U.S. transformer manufacturing facilities to its footprint.
- GE Vernova will discuss the transaction during an extended third quarter earnings conference call on October 22, 2025.
Deal Overview
On October 21, 2025, GE Vernova Inc. (NYSE: GEV) announced it will acquire the remaining fifty percent stake of Prolec GE, its unconsolidated joint venture with Xignux, for $5.275 billion1. The transaction will bring full ownership of Prolec GE under GE Vernova’s Electrification segment, ending a 30-year partnership that was originally established between Xignux and General Electric in 1995.
Prolec GE is a leading grid equipment supplier producing transformers across most ratings and voltages, with approximately 10,000 global employees and seven manufacturing sites worldwide, including five in the United States. The deal positions GE Vernova as a more complete global provider of grid technologies at a moment of accelerating electricity demand growth — driven in part by the buildout of data centers and new policies supporting domestic grid infrastructure deployment.
“We’re excited to execute this highly attractive and strategic move to acquire full ownership of our Prolec GE joint venture from Xignux, which accelerates GE Vernova’s global strength in grid technologies,” said GE Vernova CEO Scott Strazik. “This acquisition aligns with our strategic and financial objectives and is also good for our customers by strengthening our presence in North America where demand for grid equipment is growing rapidly. The deal is immediately accretive before synergies, with a partner we know well, and will drive additional profitable growth for GE Vernova.”
Morgan Stanley & Co. LLC acted as financial advisor to GE Vernova, with Skadden, Arps, Slate, Meagher & Flom LLP providing legal counsel. J.P. Morgan Securities LLC advised Xignux, and Sidley Austin LLP served as its legal counsel.
Transaction Terms
Under the purchase agreement, GE Vernova will pay $5.275 billion at closing, expected to be funded equally between cash and new debt. The acquisition is expected to close by mid-2026, subject to customary regulatory approvals. GE Vernova will discuss detailed transaction materials during an extended third quarter earnings conference call on October 22, 2025, with supplemental materials posted to its Investor Relations website.
| Term | Details |
|---|---|
| Purchase Price | $5.275 billion at closing |
| Stake Acquired | 50% (remaining interest from Xignux) |
| Funding Structure | 50% cash / 50% new debt |
| Expected Closing | Mid-2026 |
| Closing Conditions | Customary regulatory approvals |
| Accretion | Immediately accretive before synergies |
| Financial Advisor (GEV) | Morgan Stanley & Co. LLC |
| Legal Counsel (GEV) | Skadden, Arps, Slate, Meagher & Flom LLP |
| Financial Advisor (Xignux) | J.P. Morgan Securities LLC |
| Legal Counsel (Xignux) | Sidley Austin LLP |
“We have taken this decision with full conviction after years of valued partnership with GE and GE Vernova. This transaction provides the opportunity for this business and team to continue their growth under the capabilities of a global leader,” said Xignux CEO Juan Ignacio Garza Herrera. “We reaffirm our commitment to México and will continue driving our other businesses in North America by investing in innovation, technology and expansion, while contributing to the development and integration of the region. I want to express my deep gratitude to all Prolec GE employees, whose talent, commitment, and dedication have been essential.”
Strategic Rationale
The acquisition directly targets GE Vernova’s fastest-growing business: its Electrification segment, which covers grid solutions including transformers, switchgear, High-Voltage Direct Current (HVDC) systems, and AC substations. North American electricity demand is accelerating, fueled by rapid data center construction and new government policies designed to expand deployment of critical grid and electrification equipment.
Transformer supply is widely recognized as one of the most constrained bottlenecks in the global grid build-out. By acquiring Prolec GE outright, GE Vernova gains direct control over a scaled, multi-site transformer manufacturing platform at a time when lead times and pricing for high-voltage transformers are at elevated levels. The five U.S.-based Prolec GE facilities strengthen GE Vernova’s domestic supply chain and ability to serve both utility and commercial customers across North America.
Recent Prolec GE capacity expansion and innovation investments exceed $300 million across U.S. and Mexico facilities. This includes a recently announced $140 million investment in Goldsboro, North Carolina that will create 330 new jobs over the next three years. GE Vernova describes the deal as immediately accretive before synergies, with the transaction expanding its capability to serve both North American and global customers.
Prolec GE Financial Profile
Prolec GE is projected to generate approximately $3 billion in revenue in 2025, with an adjusted EBITDA margin of roughly 25%. The joint venture is expected to deliver low double-digit revenue growth in coming years, reflecting the strong demand environment for grid equipment. These figures are prepared by GE Vernova based on data provided by the joint venture under its own accounting policies, and exclude any expected synergies, integration costs, and purchase price accounting adjustments.
| Prolec GE Snapshot (2025E) | Figure |
|---|---|
| Projected Revenue | ~$3 billion |
| Adjusted EBITDA Margin* | ~25% |
| Expected Revenue Growth | Low double-digit annually |
| Global Employees | ~10,000 |
| Manufacturing Sites | 7 globally (5 in United States) |
| Recent Capacity Investments (U.S. & Mexico) | >$300 million |
| Goldsboro, NC Investment | $140 million; 330 new jobs |
*Adjusted EBITDA margin is a non-GAAP financial measure. These are forecasts of the joint venture as a standalone business prepared by GE Vernova based on data provided by the joint venture, excluding expected synergies, integration costs, and purchase price accounting adjustments determined through due diligence.
About the Companies
GE Vernova Inc. (NYSE: GEV) is a purpose-built global energy company headquartered in Cambridge, Massachusetts, with approximately 75,000 employees across approximately 100 countries. The company operates across Power, Wind, and Electrification segments, and its installed base generates approximately 25% of the world’s electricity. GE Vernova builds on more than 130 years of energy technology history and is supported by its mission, “The Energy to Change the World.”
GE Vernova currently employs approximately 18,000 people across all 50 U.S. states, and has operated in Mexico for more than 129 years, employing over 1,700 people at five sites whose equipment provides approximately 38 gigawatts of electricity generating capacity — nearly 42% of Mexico’s total.
Xignux is a diversified industrial company headquartered in Monterrey, México, with more than 33,000 employees across México, the United States, and Brazil. Its energy businesses include Viakable, a producer of electrical conductors, and the Prolec GE joint venture. In the food sector, Xignux operates Qualtia and BYDSA. Founded 69 years ago, the company’s solutions reach more than 35 countries. Xignux has stated it will continue investing in its remaining North American businesses following this transaction.